Over £27 Billion Provided by CBILS, CLBILS and Bounce Back Loans
by JD Alois
Each week, HM Treasury publishes updates on approved lending under three COVID-19 related support schemes. This week HM Treasury said £12.47 billion has been approved in the ongoing programs.
The breakdown of the funding is as follows:
Coronavirus Business Interruption Loan Scheme (CBILS)
| Data up to close of business | Value of Facilities Approved | Number of Facilities Approved | Total Number of Applications |
|---|---|---|---|
| 10 May | £6.09bn | 35,919 | 64,531 |
| 17 May | £7.25bn | 40,564 | 81,124 |
| 24 May | £8.15bn | 43,045 | 84,607 |
Coronavirus Large Business Interruption Loan Scheme (CLBILS)
| Data up to close of business | Value of Facilities Approved | Number of Facilities Approved | Total Number of Applications |
|---|---|---|---|
| 10 May | £0.36bn | 59 | 450 |
| 17 May | £0.59bn | 86 | 496 |
| 24 May | £0.82bn | 154 | 502 |
Bounce Back Loan Scheme (BBLS)
| Data up to close of business | Value of Facilities Approved | Number of Facilities Approved | Total Number of Applications |
|---|---|---|---|
| 10 May | £8.38bn | 268,173 | 363,646 |
| 17 May | £14.18bn | 464,393 | 581,516 |
| 24 May | £18.49bn | 608,069 | 769,137 |
By far, the Bounce Back Loan Scheme has provided COVID-19 related business support to small businesses. Bounce Back Loans are for or SMEs, micro-businesses, and other businesses requiring smaller loans between £2,000 and £50,000 for a term loan repaid over 6 years. The first 12 months of the loan require no payments by the business as this is covered by the UK government.
Lending for these programs is provided by both traditional financial service firms as well as select Fintechs. Once digital bank Starling Bank was approved for BBLS it experienced record demand for new sole trader accounts – so much so that it had to pause new accounts until June 1st.
Stephen Jones, Chief Executive of UK Finance, commented on the most recent HM Treasury report stating that the banking and finance industry has a clear plan to get through these difficult times:
“Lenders are providing an unprecedented level of support to firms affected by the Covid-19 crisis, with £27.5 billion being approved to over 650,000 businesses through government-backed lending schemes so far, and a further £20.5 billion drawn under bank arranged commercial paper facilities. Businesses can also access a wide package of support measures as part of the industry’s plan, including extended overdrafts, capital repayment holidays, and asset-based finance.”
Jones added that it was important to remember these loans are not a grant and firms should consider their ability to repay prior to applying.
Additional information on all of the COVID-19 support programs are available on the British Business Bank website.